This chapter gave the equation for the multiplier as 11>11 - MPC22. Several important variables were held

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This chapter gave the equation for the multiplier as 11>11 - MPC22. Several important variables were held constant in arriving at this equation. Explain whether the value for the multiplier will increase or decrease as a result of the following happening as aggregate expenditure increases:

a. The interest rate increases

b. The price level increases

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Economics

ISBN: 9781292430645

8th Global Edition

Authors: R. Glenn Hubbard, Anthony P. O'Brien

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